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Tuesday, August 26, 2014

INDU Dow Industrials New Record All-Time Intraday High

At 10:48 AM, the SPX prints another new all-time intraday record high at 2003.81. The bulls are in frenzy pushing equities higher. The SPX prints above 2004 at 10:54 AM. The Dow is beginning to break out to new all-time highs now at 17150 only a buck away. The all-time intraday high for the Dow is 17151.56 on 7/17/14 five weeks ago. The Dow all-time closing high is 17138.20 on 7/16/14 so the Dow is already above this number and will print a new record closing high if price remains above 17138.20. The bulls are relentless providing no mercy to bears. Short-covering creates mini boosts in equities.

News wires say that Hamas and Israel have reached a new cease-fire deal which adds further bull fuel.

At 11:10 AM, the Dow moves above the prior all-time record high and prints a HOD at 17152.23 overtaking the prior record by less than one point.At 11:16 AM, both the SPX and INDU print further new all-time highs. The bulls are fueled by central banker easy money and the shorts giving up the fight. Interestingly, the VIX turned positive a short time ago and despite the new record market highs, volatility is moving higher continuing yesterday’s theme. Volatility and equities move inversely over 90% of the time so something very special is ongoing in markets currently. One of them is wrong; either volatility will plummet to prove the market upside is real and sustainable, or, the stock market will begin retreating to honor the higher volatility.

At 11:16 AM, the SPX prints 2004.86 and the Dow prints 17153.80 the highest numbers in stock market history. The trannies are near but not threatening new all-time highs as yet. Dow Theorists will be looking for this follow-through. The NDX is currently logging a 10-day winning streak printing 14-1/2 year highs. The stock market is led higher by the larger cap tech stocks such as AAPL and GOOGL; this is why the NDX is outperforming. This price action is concerning since one of the signs of a significant stock market top is when a smaller and more selective group of stocks continue to push the broad indexes higher; like now.

The joy in today’s market sends European markets strongly higher. At the same time, the European bond yields continue to print record low yields.JPM says that the ECB will provide an easing program next week which creates more stock market bull fuel. Stocks may be printing record highs in the States and strong in Europe but at the same time investors continue chasing into notes and bonds (higher prices lower yields). All asset classes move higher fueled by the central banker easy money. Global assets are overpriced across the board due to the multi-year central banker intervention. The Fed and other CB’s have destroyed price discovery; no one actually knows what any asset is truly worth anymore.

Bullish traders are staggering around trading floors drunk off the Fed wine and buying any stock with a heartbeat; it does not matter what stock since the central bankers will continue pumping markets higher forever. Markets are typically bullish the last two days before a holiday weekend (Thursday and Friday of this week) but the party has already started. The dollar/yen moves above 104 so the weaker yen fuels the market upside. The 10-year yield remains steady at 2.39%. JNK (high-yield bond ETF) sneaks higher above the June record highs.

At 3 PM EST, the INDU is printing at 17126 trying to close above the all-time closing high at 17138 but remaining 12 points away. The Dow HOD and new all-time intraday record high is 17153.80 from 11:16 AM. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.Note Added 4:02 PM EST: The session ends with the INDU printing a new all-time intraday high at 17153.80 but not a new all-time closing high. The all-time closing high at 17138.20 from 7/16/14 remains in place.Volume remains light.

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